Agri sector to lead economic recovery
OPINION: Over the past month, people up and down the country have been asking me what I think is in store for the Agri sector.
Fonterra is being tipped to raise its forecast payout for the 2013-14 season.
Westpac economist Nathan Penny says 2013-14 is shaping up as a bumper dairy season.
"World prices remain very high, while growing conditions have been generally very good since the drought broke. The icing on the cake is a lower currency," he says.
The bank has raised its forecast to $7.40/kgMS, from $6.50/kgMS. It expects Fonterra to follow suit. Fonterra's board meets on Wednesday.
Penny says Fonterra may even go north of its $7.40/kgMS forecast. He also expects the co-op to update its production outlook.
"We predict a rebound in production from drought of around 5% on last year's level, while Fonterra has previously signalled production growth of 2%," he says.
Penny is surprised global dairy prices have stayed at very high levels.
"To be frank, we are surprised by that. This time three months ago, we expected world prices would be around 7% lower by the end of July.
"Tight world supply has contributed to the buoyant prices. However, we doubt that the market has gotten its head around prospects for growth in New Zealand production this season. We predict a rebound in production from drought of around 5% on last year's level. Fonterra has previously signalled production growth of 2% - any lingering difference in production outlooks, following Fonterra's update next week, may explain much of any difference in milk price forecasts."
The CEO of Apples and Pears NZ, Karen Morrish, says the strategic focus of her organisation is to improve grower returns.
A significant breakthrough in understanding facial eczema (FE) in livestock brings New Zealand closer to reducing the disease’s devastating impact on farmers, animals, and rural communities.
Farmer co-operative LIC has closed its satellite-backed pasture measurement platform – Space.
OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).
The 2024-25 season apple harvest has “well and truly exceeded expectations”, says Apples and Pears NZ chief executive Karen Morrish.
Through collaborative efforts with exhibitors, visitors, and industry partners, Fieldays says it is reaffirming its commitment to environmental responsibility with new initiatives for 2025.
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